Market leaders have begun to rebound, yet investor sentiment remains sluggish. Major stocks that plummeted last month are recovering this month, but stock turnover has dropped to its lowest level of the year.
According to the Korea Exchange, the average daily turnover rate of KOSPI-listed stocks was recorded at 0.56% from the beginning of this month until the 21st, the lowest level since 0.50% in August of last year. The turnover rate, calculated by dividing trading volume by the number of listed stocks, serves as an indicator of market trading vitality.
The average daily turnover rate for KOSPI rose from 0.86% in January to a peak of 1.74% in March. It then decreased to 1.49% in April, 1.16% in May, 0.82% in June, and 0.72% last month, falling to the 0.5% range this month. Compared to March, it is about one-third of that level.
Both trading volume and trading value have also declined. This month, the average daily trading volume for KOSPI was 333.51 million shares, and the average daily trading value was 26.5 trillion won, both at their lowest levels of the year. This represents a decrease of over 10 trillion won compared to last month's average daily trading value of 36.87 trillion won.
In contrast, major stocks in sectors that experienced significant declines last month are recovering this month. A comparison of stock price fluctuations from last month to the 21st of this month shows that key stocks in sectors such as semiconductors, defense, nuclear power, secondary batteries, and biotechnology, which have garnered attention this year, are rebounding.
Samsung SDI, a representative stock in the secondary battery sector, fell by 19.1% last month but has risen by 22.7% this month, recovering its losses. In biotechnology, HLB has shown a notable recovery, rising by 25.1% this month after a 40.2% drop last month.
Hanwha Aerospace, a leading stock in the defense sector, also saw a sharp recovery, rising by 18.1% this month after a 15.9% decline last month. Doosan Enerbility, a representative stock in the nuclear power sector, rebounded by 8.3% this month after a 24.2% drop last month.
The two major semiconductor stocks are also reversing their declines. Samsung Electronics fell by 16.5% last month but surged 17.5% from 239,500 won on the 3rd to 281,500 won on the 21st. SK Hynix also rebounded by 10.4%, rising from 1,567,000 won to 1,730,000 won after a 32.9% drop last month.
While leading stocks are recovering, trading activity has not shown similar improvement. From the beginning of this month until the 21st, the average daily trading volume for Samsung Electronics was about 25.11 million shares, a decrease of over 20% from last month. SK Hynix's average daily trading volume also fell to about 4.66 million shares, down approximately 30% from 6.72 million shares last month.
However, individual investors have not exited the market. According to the Korea Exchange, from the 3rd to the 21st of this month, individuals net purchased 2.7473 trillion won in KOSPI. In contrast, foreign and institutional investors net sold 1.205 trillion won and 3.9135 trillion won, respectively.
Recently, individual selling has become more pronounced. On the 21st, individuals net sold 1.1658 trillion won in KOSPI. Foreign investors also net sold 170.9 billion won, while institutions net purchased 248.5 billion won. Lee Kyung-min, a researcher at Daishin Securities, analyzed that "external factors have dampened investor sentiment, leading to profit-taking sales."
Han Ji-young, a researcher at Kiwoom Securities, noted that the recent trading slump is influenced by a decline in trading of single-stock leveraged products and a drop in investors' return expectations. She stated, "Earlier this year, there were concerns about overheating, but optimistic forecasts and expectations for 'Manspi' prevailed, leading investors to trade actively. However, that is not the case now."
The key issue is whether KOSPI can stabilize above the 7,000 mark. Han stated, "If KOSPI surpasses the 7,000 mark, trading value is expected to increase. Most funds are concentrated in the 8,000 range, and the index needs to recover to that level for average daily trading value to return."
* This article has been translated by AI.
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